16 ways to tweak your compensation systems to get and keep the right clients. If your partners are putting up a fight to keep clients who should be let go, take a look at your compensation system. It’s not just about billable hours. August Aquila, Creating the Effective Partnership, suggests 16 tweaks to your firm’s compensation system. While the list is not exhaustive, it does provide criteria that firms can consider beyond revenue.
The compensation trap that turns winners into losers. By August Aquila Creating the Effective Partnership The focus on most CPA firms is on billable hours. While there is nothing inherently wrong with this focus, it has become the overriding focus of firms. There is nothing wrong with making money today, but what about building for the future? With “today” being the dominant focus, what is the encouragement to CPAs to innovate? In most firms there is no alignment with innovation and compensation. You will never have innovation unless you allocate some time and reward to making it happen.
Readers’ Forum: Hours worked. Firing clients. Setting prices. Chris Basom, managing partner of Your Money Matters in Mission Viejo, Calif., wants to know the “one thing you wanted to implement before tax season but just couldn’t get to.” “Is cash still relevant?” asked solo practitioner Roxann Otto of Otto Tax & Accounting Services in Slinger, Wis. Charles G. Read in the Melbourne, Fla., area would like to know how other accountants arrive at the charges they present. Deborah McDowell Cain of her eponymous firm in Fort Worth, Texas, asked, “Does your firm work five, six or seven days a week? Is overtime for staff mandatory? Are senior staff hourly, salaried, offered overtime or comp time?” And harking back to the busy […]
Good service needs to be rewarded as much as business development. By August Aquila It seems like no matter what the topic is at partner meetings, it always reverts to compensation. There isn’t a partner out there who is not interested in his or her compensation, and maybe even more interested in what the other partners make.
The 9 essential elements for a successful partner comp plan. By Robert J. Lees and August J. Aquila Creating the Effective Partnership Every compensation plan should be constructed to help the firm achieve its strategic goals, including servicing its clients and attracting and retaining the right people.
How too many compensation systems fail of their own weight. Too many firms allow partner compensation formulas to become fraught with complexity, compromise and unintended consequences. Here Marc Rosenberg, author of How to Bring in New Partners, considers 14 of the worst complications he sees. How many of these are lurking in your firm?
Five reasons for one, eight for the other. And they’re not all created equal. After studying some 700 firms, Marc Rosenberg has some fairly hard-and-fast rules about how to bring in new partners. Here, he delivers five reasons to lean toward deciding on bringing in traditional equity partners and eight reasons for making them non-equity partners. All things being equal, they aren’t.
What makes you flinch? By Sandi Smith Leyva Accountant’s Accelerator If you feel you should be doing better than you are in business, you may have a belief pattern that is unconsciously holding you back. The first step is to bring it to the surface. Only then can it be addressed, released and replaced with a belief that will lead you to increased success. Here are five of the most common thinking patterns or beliefs that will keep your accounting business from growing.
By Ed Mendlowitz “Tax Season Opportunity Guide“ QUESTION: I got a new client because of one of my employees. Do I have to give her anything? RESPONSE: Wrong attitude! You should want to give her something. You should be happy that a staff person was able to bring in business. Many firms offer referral fees, bonuses or commissions. I suggest paying 10% of collections for five years, as long as the employee continues to work for you.